Hey, how is your trading going?
It’s been kind of difficult to trade the majors in the last few weeks hasn’t it?
Luckily for us, we have plenty of instruments (crosses) to choose from, and some of them have been trading in a ver clear market condition.
And believe me, the most important aspect of trading, even before the entry system, is whether or not you are trading the “right” currency pair.
What do I mean by the “right” currency pair.
Look, you could have perfect timing, but if you chose the wrong currency pair, the market will move against you.
AUDCAD analysis, GBPAUD Analysis
Hey we have plenty of fundamental announcements coming up this week. Just to name a few:
Monday (yesterday): AUD interest rate
Wednesday: JPY interest rate
Thursday: GBP and EUR interest rate
Friday: USD Non-farm payrolls, CAD unemployment report
Pretty busy isn’t it?
You know how I handle them, I’ve wrote about it a few weeks ago, what I can say is that I’m just going to trade what I see on the charts, I’m not going to get biased on what I think the market will do based on fundamental announcements, etc.
Do you agree with me?
AUDUSD Analysis, CADCHF Analysis, forex, GBPAUD Analysis
As most if you already know, I like to start off my analysis using the long term charts looking for cues about what each currency is likely to do. Here is how I do it.
I do my analysis based on the market swings, so I first try to identify these swing in the long term charts.
Here is a good example:
forex analysis, GBPAUD Analysis
As I’ve been telling you, what I like the most about this entry system is the simplicity in which we get our entry signals.
And with a system like this, black and white, we tend to trade with more discipline, because there is no doubt about the signal: it is or it isn’t a signal, there is no: it could be, but…
Like the GBPAUD right now, I was waiting for the GBPAUD to break an important level, once it broke it, I waited for the signal:
Forex entry system, GBPAUD Analysis
One of the main problems every trader runs through is: where to open a trade. So I’ve been working in this system, which tells us in a very simple way, where to get in the market.
There are plenty of reasons why I don’t like to take trading decisions based on technical indicators: like all of them have a lagging factor, etc. But the most important one is this one:
At the end every single indicator is based on price itself, so why would I base my trading on something (like a technical indicator) that represents a distorted view of price itself? It makes no sense (at least to me).
Anyway, let me show you this chart:
GBPAUD Analysis, price action
I’m curious about the currency pairs that you are monitoring this week…
I know most of you like to trade the majors, but I don’t see a clear condition on any of them.
These are 3 pairs I’ll monitor this week (at least at the beginning of the week):
GBPAUD – As I wrote last week, this one is probably the clearest of them all, take a look at the daily chart, it was clearly bounced from the main support level. I’ll be looking for long opportunities.
AUDCHF Analysis, CADJPY Analysis, forex, GBPAUD Analysis
Hope you had a great weekend! Did you see the Olympics closing?
Anyway… Take a look at the next chart, it is the GBPAUD, one of the currency pairs that I like the most, not only because I’ve made a few pips here but also because of the big swings:
Where do you think it is likely to go? It is as clear as water…
forex, GBPAUD Analysis, swing trading